Castrol India closes Chennai plant

Castrol India Ltd has decided to close its manufacturing plant at Tondiarpet, Chennai, from August 1, the company informed the stock exchanges today. The Tondiarpet plant is one the company's oldest in India. It was faced with a situation of high landed cost of base oil leading to a steep increase in its manufacturing cost per litre over the past several months. This had adversely affected the production activities in the plant, the company said. Castrol India had earlier offered a Voluntary Retirement Scheme to its employees working in the plant. Employees have opted to separate by availing themselves of the benefits under the scheme. The company has also decided that with effect from July 31, 2011 it would close down its said plant at Tondiarpet in Chennai. The company would decide at a later date the future of the plant, machinery and part of the land which it owns at this site, the notification to the stock exchanges says.